If income tax is withheld from an employee’s regular wages, one of the following methods can be used for supplemental wages: If supplemental wages are paid separately (or combined in a single payment, specifying the amount of each), the income tax withholding method depends partly on whether income tax was withheld from the employee’s regular wages. If supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.) are paid with regular wages but the amount of each is not specified, withhold income tax as if the total were a single payment for a regular payroll period. Taxpayers with taxable incomes between $150,000 and $300,000 ($75,000 and $200,000 for single filers) will see their marginal tax rates reduced to 6.0%.Įffective January 1, 2021, the following withholding rates apply to supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.):.Taxpayers with taxable incomes between $26,000 and $150,000 ($13,000 and $75,000 for single filers) will see their marginal income tax rates reduced to 5.5%.The law continues to be phased in beginning for tax year 2018 and ending in tax year 2025, after which point the new income tax rates will be made permanent. The 2020 New York State and Yonkers personal income tax rate schedules were revised for the third consecutive year to reflect the income tax rate reductions enacted under Chapter 60. (News release governor’s office New York Department of Taxation and Finance June 2016 Summary of SFY 2016-2017 provisions.)

The New York State fiscal year 2021 budget legislation provided that despite the financial drain of the COVID-19 emergency on the state’s budget, the personal income tax rate reductions that began in 2018 under Chapter 60 of the Laws of 2016 (Part TT) will continue. New York will continue with incrementally reducing certain state income tax rates that began in 2018 The Department has also released an updated Publication NYS-50, Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax. Proposed regulations that included revised wage bracket and percentage method income tax withholding tables for New York and Yonkers effective with wages paid on or after January 1, 2021, was previously released. The New York Department of Taxation and Finance released the 2021 income tax withholding tables for New York State and Yonkers. New York releases official New York State and Yonkers 2021 withholding tables

Nd withholding tax table for 2016